At this juncture, we need a robust logistics and transportation management, thus multimodal logistics channel. The second runner-up team, Team Alpha & Omega, did an extensive research and presented the challenges and opportunities we have. They also featured countries who have them and what we can learn from them.

1. Challenges and Opportunities in
Multimodal Logistics in India
Team : Alpha & Omega
Saanya Mehra – MBA I (Operations)
Debashish Chatterjee – MBA I (Operations)

2. FACTS ABOUT LOGISTICS IN INDIA
India spends
14.4% of its GDP
on logistics
Freight
transport
growth - CAGR
of 13.35% by
2020
Logistics
costs are 14%
of the total
value of the
goods
Losses due to
poor
infrastructure
are 4.3% of
the total GDP
India stands
35th on the
Global
Logistics
Index
STRENGTHS
• Critical component in
supply chain costs.
• Contributes towards
customer satisfaction.
WEAKNESSES
• Infrastructure Issues
• Lack of Integration
• Large no of unorganized
players.
OPPORTUNITIES
• Ecommerce Boom
• Focus on Make in India
• Implementation of GST
• Cold Chain
• Good Monsoon
• Infra Development
THREATS
• High fuel costs.
• Government policies.
SWOT ANALYSIS
Source : World Bank Logistics index, 2016 and Standard and Poor’s Report, 2016

3. FACTS ABOUT LOGISTICS IN INDIA
60%
32%
7%
1%Freight Share Among Sectors
Roads
Railways
Ports
Aviation
47%
37%
13%
2%
1%
Share in Revenue Generation
Roadways
Warehousing
Railways
Ports
Aviation
Source : Logistics Game Changer, Transforming India, KPMG, 2014

4. Transportation & Logistics efficiency indicators India Global
Road Transportation
Average truck speed (in kmph) 30-40 60-80 (Including China)
Four lane road length (in kms) 7000 34,000(China)
National highway length (in kms) 66590 1,900,000
Average distance travelled by a truck per day 200 kms 400 kms
Air Transportation
Airport waiting time – Exports (in hours) 50 12
Airport waiting time – Imports (in hours) 182 24
Aviation turbine fuel as a % of operating cost 35-40% 20-25%
Ports & Sea Transportation
Turnaround time at ports (in hours) 84 7 (Hong Kong & Singapore)
Max Containers handled per ship, per hour 15 25-30
Throughput density (maximum) 45,000 TEUs / hectare
170,000-220,000 TEUs /
hectare
Inland Waterways 3% 47% China, 44% EU
Others
3PL share of logistics 9 – 10% 57%
Table 1 .Source: World Bank Logistics Index 2016 | Table 2. Source : Adding Wheels, KPMG
GLOBAL SCENARIO OF LOGISTICS

5. MULTI-MODAL LOGISTICS
Multimodal transport is the transportation of goods under a single contract, but
performed with at least two different means of transport; the carrier is liable (in a legal
sense) for the entire carriage, even though it is performed by several different modes of
transport.
Infrastructural
Reforms
Technological
Investment
Regulatory
Reforms
NEED OF THE HOURBENEFITS
• Effective utilization of the modal mix
• Drive down logistics costs
• Reduces chances of pilferage due to
containerization.
• Reducing overall time in transit
• Reduce carbon footprint and move
towards the “green logistics”.

6. ROAD TRANSPORT
CHALLENGES Poor infrastructure and quality of roads
Last mile delivery, pricing per ton varies greatly,
depending on the accessibility to a city
Lack of training amongst Indian drivers, real time
visibility is inadequate
Intra-state taxes increase the cost of transportation
Presence of mostly unorganized players (9:1 ratio)
Higher CO2 emissions per tonne-km
OPPORTUNITIES Rollout of GST to abolish inter-state taxes, so 3PL
companies may set up warehouses based on savings from
reduced transportation costs.
 Construction of multi-modal logistics parks
Usage of GPS and data analytics for optimized route
analysis
Promotion of fleet exchanges: Creating fleet exchanges
similar to Stock Exchange or Commodity Exchange to
bring together transport customers and transport vendors
for the largely unorganized transport.
Bringing together the unorganised players (eg: Truck
Porter, TruckMandi,LetsTransport)
Use of higher tonnage trucks for better efficiency.

7. RAIL TRANSPORT
CHALLENGES Current average speed is a meager 25 kmph, although freight
trains can clock speeds up to 160 kmph
Overutilised – 7 long haul corridors – 27% of network but 50%
of the traffic
OPPORTUNITIES Creation of Dedicated freight corridors
Time tabled freight trains
Eastern Corridor: From Ludhiana to Punjab to Dankuni near
Kolkata (1839 Kms) and Western Corridor: From Jawaharlal
Nehru Port (JNPT) in Mumbai to Tuglakabad and Dadri near
Delhi 1499 km.
3 proposed in FY 16 Budget(East-West, North-South, East
Coast)
Cost freight potential to drop from 1 rupee/NTKM(Net tonne
km) to 0.18-0.53 Rupee/NTKM

8. AIR TRANSPORT
CHALLENGES Much higher cost per tonne of material transported
Last mile connectivity is not achieved
Lesser penetration in Tier-2 and Tier-3 cities
OPPORTUNITIES 1500 crores earmarked by government for 200 low
cost airports in Tier-2 and Tier-3 cities.
Reduction in Dwell time for air cargo.
Evolving government policies.
Evolution of green field airports.
Development of infrastructure for transport of
perishable items, till last mile.

9. WATER TRANSPORT
CHALLENGES Lack of last mile connectivity and integration with other modes.
There are inefficiencies in berthing, and delays in loading and
unloading. i.e. high turnaround time of vessels.ƒ
 There are delays in co-ordination between ports and the
Customs authorities.
There is poor hinterland connectivity and poor port- and
land-side infrastructure and outdated equipment.
Navigation channel restrictions do not allow bigger vessels to
be berthed.
OPPORTUNITIES Development of mega-ports.
Improve capacity utilization: For ports that are potentially
limited by the hinterland.
Enhancing port infrastructure: Increased emphasis on upgrading
both, seaside and landside infrastructure
Development of an integrated system for inland waterways that
also is connected to the roads and railways for last mile delivery.
Sufficient number of vessels to handle bulk and container cargo.
The Sagarmala initiative that aims at the modernization of ports
will be a great move and will complement the Golden Quadrilateral
project.
Containerization to help bring handling costs down and
promote multi modal transport.

10. A CASE IN EXAMPLE
Savings to the tune of INR 4,000 per car
transported via this mode.
Transportation from Varanasi to Kolkata via
NW-1, on 2 assigned vessels by IWAI
(covering 1620 kms in 6 days) – 34 cars
One double vessel can replace 50 typical
road trailers, by carrying 300 cars at a time

11. WAREHOUSING
CHALLENGES Issues in land acquisition due to capital intensive nature.
Low level of customization in the warehouses.
Inefficient operational staff that handles the warehouse.
State of cold storage in India is not good.
Lack of IT enablement to make operations efficient in
warehouses.
Over Utilization of warehouses.
OPPORTUNITIES Implementation of GST: The existing landscape of
fragmented, unorganized small go-downs will likely undergo
significant reorganization.
Development of new storage models and networks: The
emergence of next-generation storage models such as multi-
modal logistics parks (MMLPs), mega food parks (MFPs) and
FTWZs must be aligned with the development of key
infrastructure projects related to port, highway, and rail projects.
Value added services to be provided with warehouses like
cross docking, quality checking and repackaging.
Development of free trade warehousing zones.
IT enabled warehouses: Elevated Transfer Vehicle (ETV) or
the Automatic Storage and retrieval system (ASRS) at the
terminals to improve operations.

12. OPPORTUNITIES IN MULTI MODAL LOGISTICS
For India
• Single document clearance for all stages
of multi modal logistics.
• Triple and Double deck wagons
• Roll on and Roll off system
• Waiting docks for trucks and trailers
• Developing hub and feeder operations
at ports along the coast
• Development of multi modal logistics
parks
• Better material handling equipment
For Mahindra Logistics
• Integrated IT system that forecasts and
tracks
• Fleet exchange system
• Palletization of containers
• Trucking Cubes: three standard sizes of
containers
• Reaching out to Tier 2 and Tier 3 Cities
• Strategic alliances with railway and
shipping corporation
• Setting up one stop terminals for all
value added services

13. SHIFTING TOWARDS A MORE BALANCED
MULTI MODAL MIX
Parameter Type 2010 2016-17 2020
1) Network
components
(Modes)
Corridors (rail and water) ~4 Nos 2 /4
planned
7 Nos.
Connectors (expressways) 5-7 26 / 25 20-30
Last mile links NA 750
2) Enablers Logistics Park 15
proposed
15-20
3) Asset efficiency % of toll booths with
electronic tolling
<50% 275/394
FASTags
>90%
4) Investment
allocations
Water ~10% ~10%
(share of spend) Rail ~40% 55.5% 50%
Road 50% 44.5% ~40%

14. SAMPLE SUPPLY CHAIN MAPPING
Point A (Origin
Warehouse), e.g. -
Manesar
Palletisation (for
quicker loading
into containers)
Route Mapped as
per Loading points
(Trucking cubes,
WH 2, WH 3)
Material transfer
from rail to
barge/vessel
Material unloading +
loading to Rail using
cranes/reach stacker
MMLP1 (Delhi
NCR)
Varanasi (for
NW-1)
Port of Kolkata
Ready for
export
•Single tracking via integrated IT system (even for multimodal)
•Combined invoice generation
•Overall reduced cost benefits to customer
•Reduced greenhouse gas emissions
For export of textiles from Manesar to South Asian countries via Kolkata port

15. LEARNINGS FROM THE WORLD
COMBIROAD, NETHERLANDS -
• In Netherlands Combi-Road is used for the surface transport of containers.
• It makes use of specially designed tracks which can be constructed as separate
roads alongside existing motorways.
• These are automatic unmanned electric vehicles.
SMART WAY, USA
• A US Environmental Protection Agency (EPA) initiative to reduce transport emissions.
• Gave incentives to improve supply chain fuel efficiency by collaborating with freight
shippers, carriers, and logistics companies.
RIVIGO
• Relay Driver System: Track amount of time driver can stay on road.
• Reduces accidents and improves vehicle safety.
• Trucks don’t stop and hence time for travel is reduced.
LOGINEXT
• Provides real-time visibility and optimization solutions to logistics companies.
• Across different segments : First Mile, Long Haul, Last Mile and Reverse Logistics.
• Track-A-Pack uses matchbox-sized trackers for hub-to-hub transports between cities.
They are placed in shipment bags .

16. HYPERLOOP
• Hyperloop is a proposed mode of passenger and freight transportation that
propels a pod-like vehicle through a near-vacuum tube at airline speeds.
• It is hoped that the system will be highly energy-efficient, quiet and
autonomous.
DUAL MODE TRUCK, JAPAN-
Light Duty driverless trucks for urban freight in tunnels beneath the city
Help improve safety and productivity and in reducing congestion.
LEARNINGS FROM THE WORLD

17. THANK YOU